 BF69Premium
join:2004-07-28
Camden, TN | reply to markbot
Re: lower the price if no used games Why would they lower the price? They don't get any revenue from used games. So how does lowering the price of new game do anything for them? |
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Kamus
join:2011-01-27
El Paso, TX | said by BF69:Why would they lower the price? They don't get any revenue from used games. So how does lowering the price of new game do anything for them?
Is this a serious question? |
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| reply to BF69
they may want to lower the price because of price elasticity. currently many people buy a new game and then resell it...so the effective cost is lower. also, of course, you have people who just buy used games...for which msft collects nothing.
if they kill used games, they may find that the price is too high to be optimal. if they lower the price to like $40 for a new AAA release then everyone who used to buy only used games would just buy the new release and be happy. if they don't lower the price these used games buyers might just be priced out of the market.
in any case, they will consider these issues. they may find that it is optimal to not reduce the price even after killing used games....there could be relative price inelasticity such that most of the people who bought used games will now just buy the new game in the same volume. |
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 KrKHeavy Artillery For The Little GuyPremium
join:2000-01-17
Tulsa, OK
 ·AT&T DSL Service
| reply to BF69
Because their games have much lower value.
If your games now have zero resale value, then it makes perfect sense that the initial price should be lowered.
Of course, making sense has nothing in common with these ideas, so.....
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"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
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